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Harcourts MarketWatch March 2007 Issue

February 2007 goes down as the month Harcourts broke its record for the value of written sales.

This is the second time in four months that the record has been smashed with As a buyer you need to be prepared to act in a short time frame as competition the new benchmark set not far short of $1.1billion. While this great news is a for property is the norm. Speak to your NZMBA qualified mortgage broker and stunning result that vindicates the focus and sheer hard work of so many across be very clear as to your limits, be realistic with your requirements and be honest our group, what can property sellers and buyers take from this result to assist and open with the sales consultants you work with. them in their decision making? Recently we saw some high profile so-called real estate advisors suggesting buyers should withhold information from sales consultants to get a better result! Firstly, as sellers you need to understand the sales consultant’s role in your sale. Think again. As a buyer shouldn’t you secure all the professional help you can It’s simple. They take into account your property and requirements, and the to secure a property? market then provide you with a plan to maximise your sale price. When selecting My simple advice is to select a consultant you trust, be open and tell them your an agency to market your property, ask the sales consultant just one question: situation. They will work hard for you. If you don’t feel comfortable doing this How are you going to ensure we achieve the very best price? then change the consultant you work with. A pretty simple short piece of advice If you don’t like the answer then don’t hire that consultant no matter what fee really but then most good advice is like common sense. It’s just that too many level they offer. Far too many sellers are being misled into selecting their real people with hidden agendas so often obscure it for us all. estate company based on cost instead of result. So in one sentence, hire the Bryan Thomson, CEO best and you’ll end up with a great result. Harcourts New Zealand

NORTHERN February 2007 February 2006 % Change Exclusive Listings 546 632 -14% Auction/Tender 138 97 +42% Property on Hand 2,027 1,943 +4% Written Sales 652 458 +42% Average Price $502,000 $419,000 +20% Quality listings remain at a premium and ferocious competition is common in many suburbs. Sellers selecting auctions are the most astute in this market.

CENTRAL February 2007 February 2006 % Change Exclusive Listings 491 587 -16% Auction/Tender 74 79 -6% Property on Hand 2,422 2,179 +11% Written Sales 529 448 +18% Average Price $350,000 $310,000 +13% A very positive month across this region with a lift in activity being welcomed by all.

WELLINGTON February 2007 February 2006 % Change Exclusive Listings 417 453 -8% Auction/Tender 98 138 -29% Property on Hand 1,713 1,711 = Written Sales 487 473 +3% Average Price $344,000 $289,000 +19% A very positive price month in the lower North Island.

SOUTH ISLAND CHRISTCHURCH February 2007 February 2006 % Change PROVINCIAL February 2007 February 2006 % Change Exclusive Listings 709 802 -12% Exclusive Listings 333 407 -18% Auction/Tender 72 60 +20% Auction/Tender 31 56 -45% Property on Hand 2,537 2,861 -11% Property on Hand 1,962 1,891 +4% Written Sales 404 333 +21% Written Sales 682 597 +14% Average Price $289,000 $226,000 +28% Average Price $378,000 $340,000 +11% An active market with prices buoyant across the Southern provincial counties reflect a A tremendously active February in Christchurch with stunning clearance rates in all very good month. auction rooms.

Harcourts has been in existence since 1888 and is New Zealand’s leading real estate group with over 180 offices. In 1997 Harcourts moved into where it now has over 250 offices throughout Queensland, Sydney, Western Australia, South Australia, Victoria and Tasmania. Harcourts also has 10 offices in and three in . Harcourts MarketWatch is compiled by Helen Fergusson, Communications Manager, Harcourts International Ltd, tel 03-348 8784. 2

Harcourts MarketWatch March 2007 Issue

A “Smacking” for Home Owners! In almost a “smacking” of home owners for their Dr Bollard signaled that he will continue to adopt a the booming housing market at present to realize that), behaviour, Dr Bollard raised the official cash rate (OCR) gradual approach "and not rush in and over-do it." and so we can possibly expect another rate increase from 7.25% to 7.5% in his early March announcement, If we take this interest rise in perspective, we must this quarter. blaming the recent pick-up in economic activity and remember that the last time he raised rates was in The long term view however (from those brave enough the acceleration in the housing market yet again! December 2005! to voice an opinion), is that rates will come down again – but not before they go up… a smidge! So, fix if you He also complained about "continuing rapid expansion What was a little bit scary was the statement that a can, but short term… and wait this one out. of mortgage credit at very low margins, and strong further rate hike may be seen to be needed "depending Andrew L'Almont growth in household incomes." In an almost immediate on the persistence of the current upturn." Everyone CEO / Director reaction, the New Zealand dollar fell about 0.4 US cents at the RBNZ is still hoping something's going to happen Mortgage Express and wholesale interest rates rallied about five basis to slow this economy down. I think they're going to be Tel: 09 479 3298 points. disappointed on that front, (you only have to look at www.mortgage-express.co.nz

Harcourts Rural Farm prices and sales volume have had a cautious Harcourts’ own rural team continued to perform at a whilst sheep farmers’ finishing lambs are finding their start to 2007. The national median sale price was down very high level and managed the sale of twice as much profit margin squeezed tightly. by 23 percent in January compared to the previous rural real estate in dollar terms this January compared month of December. There are clouds on the horizon with January 2006. Sales turnover was up an incredible Viticulturalists, especially in Hawkes Bay, are looking for some areas in the rural farming sector due to recent 103 percent compared with last January and unit forward to a high quality vintage following ideal February interest rate increases, falling sheep meat prices and numbers sold were up 66 percent reflecting both the and early March weather conditions from a producing the continuing strength of the NZ dollar. calibre of the team and the commitment Harcourts has grape planted area of 24,000 hectares which is up There were also only 140 rural sale transactions in towards servicing the rural and lifestyle sector 2000 hectares on last season. So no doubt we can all nationwide. January compared to 210 in December. Although on a look forward with enthusiasm to sampling some very year to year comparison the main farming categories Overall rural New Zealand is experiencing ebbs and drinkable wines from the 2007 vintage. are reflecting good value increases with dairy at 20 flows with arable farmers in Canterbury experiencing percent above with both finishing and grazing properties a bumper crop yield with some autumn sown feed Kim Shannon at 12 percent above the same time last year. wheat crops yielding, 25 percent higher than last season Harcourts National Rural Manager

News Update Ten Years in Australia New Zealand’s largest and Australia’s fastest growing As the only major Australasian real estate operation to In the same year, a joint venture with independent real estate group, Harcourts International Ltd, this month have expanded from New Zealand into Australia, Tasmanian company, M & M Real Estate, was formed celebrated its first 10 years in Australia, since launching Harcourts’ Queensland operation began with four offices and Harcourts also took ownership of the Roy Weston in Queensland in 1997. in Ashgrove, Surfers Paradise (still with the original Group of 61 offices in Western Australia, Northern owners), South Brisbane and Southport, and a State Founded by JB Harcourt in New Zealand in 1888, Territory and Indonesia. Harcourts was expanded into Australia in 1997 by Mike Support Office in Brisbane. With three offices in Fiji, and last month’s announcement and Irene Green, who moved with their family from New South Wales was the second state to come on Auckland where they had built up one of Harcourts’ board in 2003 with close to 20 offices. In 2004 Harcourts of its launch in Victoria with 25 offices in the MPRE most successful franchises of nine offices, Mike Green formed a joint venture with boutique South Australian Harcourts group, Harcourts now has just on 430 offices Real Estate. Mike Green is now Managing Director of real estate company, Brock Real Estate, to become in New Zealand, Indonesia, Fiji and every state in Harcourts. Brock Harcourts, of which there are currently 36 offices. Australia.

While every effort has been made to ensure that the information in this publication is accurate we recommend that, before relying on this information, you seek independent specialist advice.

Contact for further details: Bryan Thomson, CEO, Paul Wright, Executive Director Harcourts New Zealand Harcourts International Ltd Tel: 09-520 5569 or 0274 780 478 Tel: 03-348 8784 or 0274 320 488

Jo-Anne Clifford, General Manager, Kim Shannon, National Rural Manager, Harcourts New Zealand Harcourts New Zealand Tel: 09-520 5569 or 0274 921 866 Tel: 027 220 2937